Auditors - Criteria: Employees, including management should adhere to internal control policies of the
Response: The auditors overextended their interpretation of the clear and direct language in the “purpose” section. Specifically, paragraph one of the Financial and Grants Management Policy, which states:
“The purpose of these grant and financial management policies and procedures is to establish clear procedures and JAUNT, Inc.’s position regarding grant and financial management and administration of Federal Transit Administration (FTA), Virginia Department of Rail and Transportation (DRPT) and Charlottesville Area Transit’s (CAT) (collectively referred to as “Grantors”) grants when JAUNT, Inc. is the subrecipient.”
The use of these words is intended to be clear and direct, with no interpretive meaning. The statement means all of the guidelines contained in the document only apply to the use of the grants and corresponding local funds received to operate the public transit services, as outlined explicitly in those grants.
Auditor -Condition: The Chief Executive Officer violated internal control policies of the Corporation.
Response: incorrect and defamatory. The policies referenced do not apply to the purchases supported by private contract revenues. Furthermore, the auditors originally formed this opinion based on a “travel policy” that was never approved by the Board of Directors and did not exist in Jaunt’s policy and procedure files or any of Jaunt’s files. The auditors based their opinion on a document that never existed
Auditor - Cause: Management failed to enforce internal control policies.
Response: incorrect. See the discussion above.
Auditor - Effect: There were numerous expenses for goods, services, and travel which violated internal controlpolicies of the Corporation.
Response: incorrect. See the discussion above. The goods, services, and travel purchased were supported with private contract revenues. Private contract revenues and expenses are not considered part of the “federal award” nor should be included in the audit. The Financial and Grants Management Policy does not apply to those funds.